Decision making is one of the key aspects in all life activities, and in most instances, it is used in evaluating the entity’s impact and outcome (Silvius et al., 2017). Wen, Qiang, and Gloor (2018) postulate that there are different types of decision making, namely, business, personal, and consumer decision making. The decision-maker can make a specific choice through the establishment of the context at hand; thus improving the Decision-making processes by realizing the category where the decision lies among the three types. By reflecting the world of business, organizations are on the verge of incorporating various measures to enhance their competitive advantage. In project management, Decision making is usually one of the key factors that help organizational projects shoot to the next level (Wen, Qiang, & Gloor, 2018). Therefore, that has motivated the decision that modern project management offer in their specific environments that requires flexibility, complexity, and subjectivity of the decision-makers. In such a situation, whether an organization is a public or private entity, there has to be a series of Decision-making processes in every project that they launch. Samset and Volden (2016) postulate that such projects can involve activities such as bid evaluation, resource allocation, vendor allocation, or assigning project manager. Hence, the decision in such a situation needs to be managed appropriately and effectively since it also directly affects time and resources (Galli, 2018). Therefore, the report’s objective is to evaluate the decision-making and analysis that Wanda Group assimilated while incorporating Legendary Pictures in their organization. Through the report, the use of SWOT analysis will help in evaluating the factors that Wanda Group will need to use for the successful assimilation of the Legendary Pictures.

1.1 Definition of Decision Making and Analysis

Enoch (2019) postulates that decision refers to a specific action that gets chosen within a group of other alternatives in an organization that helps in achieving the goals or objectives of an entity. With that regard, Devi and Devaki (2019) explain that for decision making, it is a process that is indispensable and a continuous one that helps in managing a business or organizational activities.

1.2. Definition of Decision making analysis

Decision making analysis in project management, according to Virine (2017), helps in evaluating business areas such as operational management and strategic planning. Thirathon et al. (2017), in their definition, views decision making analysis as a component of project management that evaluates organizational or business-related short and long term drawbacks and benefits with various decision alternatives execution. The businesses or organizations that conduct such analysis focus on the value of decision making analysis in terms of money. Hence, the more accurate the decision making analysis, especially on the potential alternatives in case of the business uncertainties and risks, the more the value of the project increases. For the Wanda Group case, the alternatives apart from the entertainment include real estate and hotel management, which ensures that the organization is safe in case one activity fails. According to Virine (2017), through a study of human psychology, there are various means in which people choose the alternative decisions, as well as in the ways that such people assess probability, identify and manage risks, and in making decisions. Hence, for businesses and organizations to have a successful decision making analysis, there is a need to understand such patterns comprehensively as a way of improving their decision quality.

1.3 Background study

Dalian Wanda group being a conglomerate in China has its headquarters situated in Beijing. The Group mainly focuses its attention on activities such as sports, tourism, real estate, hotel management, and entertainment. The renowned sub-companies associated with the Group include Hoyts Group and the Wanda Cinema as well, it holds the majority shares at the AMC Theatres. In 2016, the organization signed a deal worth $3.5 billion in its acquisition of Legendary Pictures Entertainment (Birke, 2016). The agreement between the two groups came as a surprise since Legendary Pictures is known as a global blockbuster when it comes to the big-budget movie studio. Some of its renowned movies include Jurassic World and Godzilla, making the largest entertainment company operate under Chinese companies across the border. In their estimation, Dalian Wanda Group viewed the acquisition as an avenue to globally raise its revenue in the film industry. Hence, through the collaboration of the two companies, there must have followed a process of critical decision-making, which led to the signing of the deal that might be beneficial not only to the organizations but also to China.

1.3.1 Factors influencing decision making

In decision making, several factors have a hand in influencing the decision processes, as indicated below:

1.3.1.1 Cognitive Biases

Cognitive biases can be defined as patterns where decision making looks more on generalization and observations. According to Doskey and Barry (2018), this kind of thinking may lead to many inaccurate judgments, faulty logic, and memory errors since it also links with past experiences. In most decision making that relies on cognitive biases, the organizations mainly rely on the credence that links with the previous knowledge and at times with the expected observation. At such instance, uncertain information gets dismissed since the decision-maker does not focus much on the bigger picture. For instance, during Wanda Group’s acquisition of Legendary Pictures, they might overlook factors such as government rules and regulations that have cost them the acquisition of AMC Entertainment, leading to the massive loss. In this case, the kind of cognitive bias that they will be omitting is both the omission and the confirmation bias.

1.3.1.2 Past Experiences

In most instances, the past organizational experience can also act as a reference point in any decision making. According to Kerzner (2017), the company’s future success might be directly influenced by the company’s past decisions since it is more likely that such an organization will repeat the same decision-making procedures, especially if the decision led to a positive outcome. Consequently, through the theory of decision making, individuals or organizations are in a position to judge the present uncertainties and other attributes. Danesh and Ryan (2018) stipulate that in most instances, the previous decision outcome was negative. It is most unlikely that people will avoid it in all ways possible, especially if they follow the direction of utility theory. For instance, Wanda Group’s decision to acquire Legendary Pictures would not have happened if the decision-maker relied on their experience with AMC Entertainment; instead, Wanda Group focused on the bigger picture is the financial gain.

1.3.1.3 Individual Relevance

Galli (2018) presupposes that once an individual makes a decision, they set to believe that such decision matters, thus believing that no one can discredit their decisions. Danesh and Ryan (2018) also posit that, through the resource-based theory, an individual or a company can boost its productivity than others despite operating similar businesses. For instance, the decision by both the Wanda Group and Legendary Pictures shows a great determination in pursuit of success (Burzeski, 2016). Therefore, unlike other companies, Wanda takes the risk of approaching a foreign company to gain its competitive advantage.

1.3.2 Significance of Decision Making

The success of any organizational project or business usually makes decision making its key function. Burinskienė et al. (2017) postulate that business owners and directors are the key personnel responsible for decision making, which is reflected through the ultimate outcome of the organizations that they manage, which is different from the large companies. Also, some decision regarding staffs, especially in a smaller company, usually possesses a greater impact when compared to the same decision in large enterprises such as layoffs and salary cuts. Stingl and Geraldi (2018) postulate that once a company indulges in strategic decision making measures, it is so obvious that even the staff will always be in a position to respect such decisions positively. In return, the staff will also set a good example by not only taking part in enhancing organizational productivity but also in promoting staff morale. Consequently, through a company’s decision making instances, the suppliers and customers also notice such measures and can end up boosting or failing productivity and business success (Jones & Morrison-Saunders, 2016). For instance, despite having a commotion by integrating AMC Entertainment and Legendary Pictures, Wanda Group suppliers, staff, and customers might be on the verge of distrusting the company’s decision making in the future.

Therefore, according to Burinskienė et al. (2017), there will be a need for the organizations to ensure that they have clarifications of the essentiality of their next to be decisions and its effect on the business success as a way to weigh the company’s right direction. Also, to ensure that the decision is viable, Kezner (2017) proposes that it is essential for an organization to brainstorm with the stakeholders to rule out the possible implications of the decisions to be made. In the case of Wanda Group, instead of relying on their own expertise, they would opt in to incorporate an external expert to balance the decision making. In such an instance, Wanda Group would be in a position to make a decision that is cost-effective towards the organization. As well, Jones and Morrison-Saunders (2016) opt that organizations must consider their decision options carefully. Once the main decision is settled upon, the next phase involves the decision execution and implementation. That will help the decision-maker to stop doubting the already made decisions. With those considerations, the organizations should ensure that the executed and implemented decisions reflect the organization’s performance and strategies for success purposes.

1.3.3 Decision-makers

Decision-makers in organizations differ depending on whether the organizations are public or private entities (Wen, Qiang, & Gloor, 2018). For the public corporations, the main stakeholders include buyers and sellers who then selects the executive board members whose work is in representing the stakeholders in decision making. Consecutively, also the board usually engages in appointing their representatives, such as the Chairman or the CEO. For instance, Wanda Group appointed Wang Jianlin as their Chairman and whose representation can be felt often while Thomas Tull governed legendary Pictures as their Chief Executive Officer (Birke, 2016). As well, in some instances, López et al. (2018) postulate that after the executive board has finalized, the stakeholders usually approve the already made decisions. On the other hand, for one to be a decision-maker in a private entity, it may range from sole proprietor, partnership, and the limited liability type of ownership (Wen, Qiang, & Gloor, 2018). Despite having a different type of decision-making process, private entities usually possess similar decision-makers. However, the differences are that in public, anybody can be a shareholder and be one of the decision-makers.

1.3.4 Decision methods and processes in Decision making

Meredith, Mantel, and Shafer (2017) assert that a good and successful organization usually possesses a rational and logical decision-making process. Therefore, if the organizations employ such mechanisms in decision making, then the probability of success increases. Kerzner (2017), predicates that the project manager must state the problem at hand for a clear comprehension of the solution needed. The team must also be aware of the existing alternatives to work with viable alternatives, which are then evaluated using various analyses. In the case of Wanda Group, the decision making should involve SWOT analysis to evaluate and come up with the best decision where all low ranked alternatives are to be eliminated and leaving those that are capable of solving the stated problem. Meredith, Mantel, and Shafer (2017) indicate that before the decision is implemented, the project managers should always make revisions of the decision concerning the project schedule, plan, and other necessary resources for compatibility purposes. The next process will be regular monitoring and evaluation of the project in comparison with the expected benefits.

1.4 Aim of the study

The report’s main aim is to identify and analyze various decision-making processes and how they apply to the Wanda Group in its acquisition of Legendary Pictures.

1.5 Study objective

The report objective is to evaluate the effectiveness of decision making and analysis

2.0 Decision making Analysis: Wanda Group Analysis

The analysis of Wanda Group, concerning the acquisition of Legendary Pictures, will be analyzed using SWOT Analysis, as indicated below.

2.1 Wanda Group Strengths

2.1.1 Innovation

Wanda Group dares to be innovative in all circumstances such that its stakeholders are willing to take risks regarding the expansion of the organization’s territories. For instance, it is the only company in China that has risked tackling big organization entertainment companies in the United States to acquire them the recent being Legendary Pictures. With that regard, it has become the biggest cultural industry in China, making it a cultural enterprise.

2.1.2 Excellence Commitment

The Group’s yearns to excel in all their endeavors, and this can be seen in their decision to incorporate financial, cultural, and commercial properties such as hotels to ensure that they maintain their competitive advantage. For instance, despite the flopping of their first trial in engaging AMC Entertainment, a United States entertainment company, they went ahead for the second trial with the Legendary Pictures. Since it seems that the decision is still not working at its best, it’s predictable that they might poach another renowned global entertainment company to fulfill their desire to excel.

2.2 Wanda Group Weaknesses

2.2.1 Government Relations

The issue of receiving favor from the government is part of its weaknesses since so much issue that is going on within the organization might result in a downfall. As Frater (2018) states, Wanda is rumored to have been influenced by the government to sell Legendary Pictures as it is an oversea asset. In that situation, the organization’s sole decision making is affected since the pressure amounting from an outside force might be the driving force for implementing decisions without evaluating their impacts.

2.2.2 Wanda’s wandering focus

Wanda has severally been out of focus areas like culture since they have incorporated so many activities making it hard to maintain Movie Company’s success. As a result, their focus in decision making since it is under Chairman Wang, he might offer decisions that might not address the lying problem, especially when pressure mounts from the government.

2.3 Opportunities regarding Wanda Group

2.3.1 Competitive advantage

The major opportunity that befalls the Wanda Group is the acquisition of competitive advantage globally. Even without counting the financial gain, through their decision to acquire America’s biggest production houses like Legendary, it has gained attention even for its other business, making such a decision more tactical.

2.4 Wanda’s Group threats

2.4.1 Inflation

China has been faced by inflation for the longest time, and if the costs of goods go up, it will lower the number of purchases. The production rates might have shot up due to the management’s decision to install new managers who would bring different rules within a short time in the management of Legendary Pictures.

3.0 Findings and Recommendations

3.1 Know it all

When organizations pretend to have all answers, they are always on the verge of implementing wrong answers. Consequently, the creativity in such organizations is completely shut down, hindering their expansion in terms of thinking capacity. Therefore it would be essential for organizations to brainstorm and evaluate the situation before implementing them. For instance, Wanda Group should have ensured that all its stakeholders had a hand in determining the effectiveness of incorporating Legendary Pictures in terms of both long and short profit that it would bring to them.

3.2 Blinders

In most instances, the organizations fail when they overlook some red flags while making decisions. In such situations, one will find out that they are various realities that will sooner or later limit their success that could have been tackled at the problem identification stage. In the case of Wanda Group’s acquisition of Legendary pictures, there seems to have been a blinder that was ignored by both companies that ended up to immense loss that even made Thomas Tull exit one year after its acquisition.

3.3 Hip shooter

Most individuals and organizations are always in the run of implementing a decision before questioning its course. Therefore, many knees- jerking decisions are reached through assumptions rather than tested facts leading to the downfall of many companies. For instance, if Thomas Tull had questioned the collaboration with the Wanda Group before signing any deal, then it would have noted the downfall of a company like AMC Entertainment, thus making a merited decision of facts and possibilities. Therefore, organizations should always evaluate past experiences before indulging in any decision to avoid flawed decision making.

4.0 Conclusion

Every individual or an organization that needs to boost their success should ensure that they make sound and strategic decisions. In all instances, they should ensure that they consult and follow the right decision-making procedures before implementing them. The decision-makers may also carry up a follow up through questioning the viability of various decisions to enable them to probe the effectiveness of the decision, thus improving their decision making processes. With that regard, they will be in a position to evaluate what to do and what not to during and after decision making, thus improving their competitive advantage in the global market. Failure to observe the decision-making processes effectively may result in immense failure.

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Decision Making and Analysis in Projects: Wanda Group’s Case

1.0 Introduction